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• W1498480201 abstract "I compare the performance of alternative monetary rules for Canada using an open economy model under incomplete markets. Different rules generate different paths for the markup and the terms of trade. A comparison of welfare levels suggests that flexible inflation targeting, the Bank of Canada's current policy, dominates strict targeting rules≥among which a fixed exchange rate with the U.S. and the Taylor rule. In contrast to other studies, strict targeting rules generate a more stable real economy by stabilizing markup dynamics. Flexible inflation targeting dominates because it yields a positive covariance between consumption and the labor effort, which provides agents with a source of risk diversification." @default.
• W1498480201 created "2016-06-24" @default.
• W1498480201 creator A5062511675 @default.
• W1498480201 date "2000-10-30" @default.
• W1498480201 modified "2023-09-27" @default.
• W1498480201 title "Alternative Monetary Rules for a Small Open Economy: The Case of Canada" @default.
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• W1498480201 hasPublicationYear "2000" @default.
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